DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
USA - NASDAQ:DBX - US26210C1045 - Common Stock
32.17 USD
+0.3 (+0.94%)
31.88 USD
-0.29 (-0.9%)
DBX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. DBX has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DBX.
1. Profitability
1.1 Basic Checks
DBX had positive earnings in the past year.
In the past year DBX had a positive cash flow from operations.
DBX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DBX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 17.46%, DBX belongs to the best of the industry, outperforming 93.21% of the companies in the same industry.
With an excellent Return On Invested Capital value of 52.97%, DBX belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DBX is significantly above the industry average of 11.85%.
The last Return On Invested Capital (52.97%) for DBX is above the 3 year average (17.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | N/A | ||
| ROIC | 52.97% |
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
1.3 Margins
DBX has a Profit Margin of 19.16%. This is amongst the best in the industry. DBX outperforms 83.93% of its industry peers.
DBX's Profit Margin has improved in the last couple of years.
DBX's Operating Margin of 22.67% is amongst the best of the industry. DBX outperforms 88.57% of its industry peers.
In the last couple of years the Operating Margin of DBX has grown nicely.
DBX has a better Gross Margin (81.35%) than 83.93% of its industry peers.
In the last couple of years the Gross Margin of DBX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.67% | ||
| PM (TTM) | 19.16% | ||
| GM | 81.35% |
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DBX is creating value.
DBX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DBX has been reduced compared to 5 years ago.
Compared to 1 year ago, DBX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that DBX is in the distress zone and has some risk of bankruptcy.
DBX has a Altman-Z score of 0.78. This is in the lower half of the industry: DBX underperforms 66.07% of its industry peers.
The Debt to FCF ratio of DBX is 3.00, which is a good value as it means it would take DBX, 3.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DBX (3.00) is better than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Altman-Z | 0.78 |
ROIC/WACC5.24
WACC10.1%
2.3 Liquidity
DBX has a Current Ratio of 0.60. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.60, DBX is doing worse than 87.50% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that DBX may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, DBX is not doing good in the industry: 87.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.32% over the past year.
The Earnings Per Share has been growing by 38.64% on average over the past years. This is a very strong growth
DBX shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
The Revenue has been growing by 8.93% on average over the past years. This is quite good.
EPS 1Y (TTM)22.32%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%18.33%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.39%
3.2 Future
Based on estimates for the next years, DBX will show a small growth in Earnings Per Share. The EPS will grow by 2.92% on average per year.
The Revenue is expected to decrease by -1.17% on average over the next years.
EPS Next Y8.86%
EPS Next 2Y8.23%
EPS Next 3Y5.13%
EPS Next 5Y2.92%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.93%
Revenue Next 5Y-1.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.74, the valuation of DBX can be described as very reasonable.
DBX's Price/Earnings ratio is rather cheap when compared to the industry. DBX is cheaper than 88.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of DBX to the average of the S&P500 Index (27.20), we can say DBX is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.94, the valuation of DBX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DBX is valued cheaper than 88.93% of the companies in the same industry.
DBX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 10.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBX is valued cheaper than 86.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DBX is valued cheaper than 95.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 13.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of DBX may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)0.3
EPS Next 2Y8.23%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.17
+0.3 (+0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners114.18%
Inst Owner Change5.3%
Ins Owners5.88%
Ins Owner Change5.14%
Market Cap8.68B
Analysts51.58
Price Target28.61 (-11.07%)
Short Float %9.53%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.38%
Min EPS beat(2)11.32%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)12.53%
Min EPS beat(4)11.32%
Max EPS beat(4)15.74%
EPS beat(8)8
Avg EPS beat(8)11.93%
EPS beat(12)12
Avg EPS beat(12)11.35%
EPS beat(16)16
Avg EPS beat(16)9.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)0.16%
Revenue beat(8)1
Avg Revenue beat(8)-0.33%
Revenue beat(12)3
Avg Revenue beat(12)-0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.15%
PT rev (1m)-0.45%
PT rev (3m)-0.45%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)1.14%
EPS NY rev (1m)2.46%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 10.94 | ||
| P/S | 3.43 | ||
| P/FCF | 9.73 | ||
| P/OCF | 9.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.95 |
EPS(TTM)2.74
EY8.52%
EPS(NY)2.94
Fwd EY9.14%
FCF(TTM)3.31
FCFY10.28%
OCF(TTM)3.34
OCFY10.39%
SpS9.39
BVpS-4.84
TBVpS-6.67
PEG (NY)1.32
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | N/A | ||
| ROCE | 62.12% | ||
| ROIC | 52.97% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 22.67% | ||
| PM (TTM) | 19.16% | ||
| GM | 81.35% | ||
| FCFM | 35.23% |
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
ROICexc(3y)69.99%
ROICexc(5y)80.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.07%
ROCE(5y)17.71%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.6%
ROICexc growth 5YN/A
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
F-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 6.71% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.51% | ||
| Profit Quality | 183.81% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.78 |
F-Score4
WACC10.1%
ROIC/WACC5.24
Cap/Depr(3y)17.74%
Cap/Depr(5y)24.54%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.78%
Profit Quality(3y)165.94%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.32%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%18.33%
EPS Next Y8.86%
EPS Next 2Y8.23%
EPS Next 3Y5.13%
EPS Next 5Y2.92%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.39%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.93%
Revenue Next 5Y-1.17%
EBIT growth 1Y12.3%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year20.78%
EBIT Next 3Y4.99%
EBIT Next 5Y8.46%
FCF growth 1Y19.21%
FCF growth 3Y7.53%
FCF growth 5Y17.4%
OCF growth 1Y16.65%
OCF growth 3Y7%
OCF growth 5Y11.09%